All Forum Posts by: Account Closed

@Robert M. I've read a good bit of the 3 blogs on this and I've seen the "irresponsible" term tossed quite often at landlords who were over-leveraged or just short on reserves.  Look, all that aside I buy most of your argument personally but I don't feel it's my right to toss my judgement on others.  I don't know where most of you are at in this whole cycle and can't begin to understand individual motives.  

@Account Closed Wow you go dark quick.  As I mentioned a few posts ago, I'm working with my tenants as needed but don't let that slow you in your rush to judge any landlord who isn't excited about possibly losing their savings and/or homes while being FORCED to keep other comfortably secured.  

Enjoy your perceived higher ground as you curse those who will be paying out to benefit others.  You saint you. 

@Robert M. The individual had properties that were paid off but relied on the rental income to live.  Due to the current situation was told by the bank they wouldn't qualify for a mortgage.  Luckily for them the same government that was imposing $50k/year worth of education taxes on her properties was the same one letting her tenants know that if they didn't pay rent there was nothing she could do.  She didn't mention how long she could last with that tax (and other expenses) if she was getting minimal rents back, but I don't see her as the villian in this story.  

I don't believe the Restaurant analogy is correctly aligned with what we are facing as landlords.  A tighter analogy would be if there were a law passed stating that someone could ask for food and get it for free, or at a discount of whatever they felt like paying, and the restaurant owner would be forced to give out that food.  Then if they were no longer able to pay their bills and close down they could be berated by someone like you for not being properly prepared for the situation.  

I think some of the opinions here might change if this becomes less of a 2 month issue and more of a 1 or 2 year issue.  I think we all are fine with a little charity but at some point it becomes survival.  Like the poster before that has to pay $50k in taxes per year on her houses and can't get financing on them.  When will she have contributed enough to her tenants to please you and gain your approval as an OK human?  Once she loses all of her houses and is put out on the street?  Will that satisfy you?  

For myself I'm working with my tenants and plan to help them through this crisis as best I can, but that's a personal decision.  I don't feel it's my place to toss barbs at someone else's character because they have the crazy ideas that tenants should pay their rent eventually.  

First off, @Natalie Cloutier thanks so much for sharing your letter.  This type of help is what makes this group so great. It may not match everyone's specific condition but there are some good ideas in there for most of us who haven't put together a letter/e-mail yet.  

Like many of you, I'm going to wait until rent payment results are in.  My Property Manger, who is awesome, is great at communication and I've given her permissions to make the first move of assistance for those who can't pay full rent.  We have not discussed what to do with those that can't pay any rent but eviction is not an option and I'm doubtful that if I made it a note "due to be paid over .... months..." that it might not get paid even then.  So I'm thinking about an alternative that is helpful but pushes them to resume at least a part of rent as soon as they can.  

Thanks all for your ideas and input.  Even the ones I may not agree with are helpful in my decision making.

@Danny Grey What those people don't realize is that your stock's don't have a monthly cost tied to them.  What the government is doing in many areas is telling Tenants that there's no penalty for not paying your rent and that landlords just need to keep up on the property taxes, maintenance, insurance etc and are greedy to expect any rent and/or assistance.  

None of us want to throw people out on the street but none of us want to go deep into debt or deplete all of our reserves by being forced to support others with no assistance or choice in the matter.  Don't get me wrong, I do not plan to try to evict anyone, even though it's still an option where my properties are. I don't think it's the right thing to do but that is different that areas where the government is mandating the point and telling landlords to just eat the costs and shut up.  

I hope you all come out well after this and keep safe.  

  

My agent says the lost rent coverage I have doesn't match the current situation.  

My disagreement with some of the plans out there is that they don't seem to work out well over 6 month period of downtime and I'm a little pessimistic that we beat down the virus and recover the economy before then.  I would say that any plan you put together should start out with the assumption that times won't significantly change for at least 6 months.  

Personally I'm not going to jump into this by giving a free month's pass at the very beginning where many still have the capacity to pay.  I'm holding my best offers for later months when payment just isn't going to happen.  Not to discourage anyone's course of action.  

Right now we are going to just expect the rent until told differently.  If a renter truly can't pay we will offer them a 50% credit on rent and review on a month-by-month basis.  I'm not really excited about going to credit cards but will discuss with my Realtor/Property Manager as she more in touch with our tenants than I am.  

I guess that the thing.  Some of us have a good backing of reserves and some probably are worried about making ends meet this month.  I would hate to have to give up equity or take on a new loan to weather this storm and I hope very few of us have to.  

I believe the difference here and with many businesses is that are (or will be) put in a situation where the government will be saying we have to stay open (ie keep renting) and have few weapons to insure we get paid (ie no ability to evict even the worst tenant).  Nobody want's to evict tenants (good ones) but there should be a plan to assist us in keeping these people adequately sheltered.  

Life is still good, I say this because I have money in the bank, food in the pantry and a job.  In 3 months one of those situations may be different and in six months 2 may be different.  If this goes a year, all three of my gifts may be gone.  

What would make sense for me for the Feds to do would be to push some money into HUD to temporarily increase the HUD certificates that can go out and decrease the time to qualify for one. So, for example, the once solvent tenant who is now unemployed with minimal prospects can get a HUD certificate that would pay the Landlords a portion of rent (not a huge money-making portion but an amount that would help them meet their expenses).

For example something like this:

Tenant loses job and after 30 days of unemployment they can get this special new certificate that will pay X amount (determined by city and # of rooms).  So the landlord who was once getting $1100 for his 3 br house might now get 650 but it will protect both the tenant and the landlord in case this doesn't get resolved within the next 6 months. 

I don't think this should be a period where tenants are in jeopardy and I believe that landlords should at least be made whole enough to stay solvent enough to keep the property and not be in a position of total insolvency after this is all over.